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RNS Number:3495Y
Reed Health Group PLC
9 July 2002


                                                                     9 July 2002


                  Reed Health Group plc ("Reed Health Group")


                       Pre close period trading statement


Reed Health Group is making a pre close period statement today in respect of its
results for the year ended 30 June 2002.

Trading during the second half of the year has been in line with the Board's
expectations.

Turnover in Reed Nurse, Reed Health Group's temporary nurse supply business, has
reduced following the change in focus of the business from long term contracts
to a more even mix of higher margin spot business and long term contracts. As a
result, the Board anticipates that this will have no impact on Reed Health
Group's profitability.  This change is a result of the introduction of NHS
Professionals, the nurse bank operated by the NHS.  Looking forward, the
continuing impact of NHS Professionals in Reed Nurse's core markets of London
and the South East remains uncertain, with many London based NHS Trusts
appearing reluctant to use NHS Professionals at this time.

On 28 May 2002 Reed Health Group completed the acquisition of The Locum Group
Limited ("Locum") for a cash consideration of £33.7 million.  The cash
consideration was satisfied as to £20.9 million from the net proceeds of a
placing and open offer and £12.8 million from Reed Health Group's own cash
resources and new banking facilities.  Integration of Locum into Reed Health
Group's operations is proceeding according to the plan put in place prior to the
acquisition and the Board is pleased with the contribution made by Locum since
28 May 2002.

The acquisition of Locum has given Reed Health Group the opportunity to grow its
business and widen its presence in the public sector staffing markets.  The
Board believes that the growing demand for staff to work in the public sector,
combined with demographic changes, will continue to provide considerable
opportunities for Reed Health Group.  As a consequence the Board views the
future with confidence.

Reed Health Group will announce its results for the year ended 30 June 2002 on 9
September 2002.


                                    - Ends -


Reed Health Group plc                                        Tel: 020 7834 3181
Christa Echtle, Chief Executive
Desmond Doyle, Group Finance Director

Weber Shandwick Square Mile                                  Tel: 020 7950 2800
Louise Robson or Graham Herring



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